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The traditional wealth management business model is coming under attack from regulators and clients who are demanding more, but paying less. Steve Martin, Senior Business Consultant at Dion Global Solutions, suggests that it is time to re-evaluate the contentious topic of modelling and model portfolios, and assess whether they can deliver the accuracy and efficiency that wealth managers need without compromising the tradition of highly personalised service. If there was any need to highlight the regulatory challenge faced by wealth managers, the FSA ‘Dear CEO’ letters have made the issue strikingly clear.
As the letters showed, the industry has yet to reach the required standards to capture, monitor and – equally important – prove suitability. Within the industry,...
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